Former Reserve Bank of Malawi (RBM) governor Dr. Dalitso Kabambe has taken a swipe on measures government has just announced to cushion Malawians on the effects of 44percent kwacha devaluation saying it is like quenching fire with flammable material.
Politician cum economist Dr. Kabambe says the 44 percent lethal weapon of mass human suffering devaluation was caused to a large extent by fiscal excesses in the budget and weak monetary conditions.
“To counter effects of the same, government is proposing to inject further liquidity in the financial system which will further weaken the monetary conditions, in turn leading to another massive devaluation in the near term.
“This is like quenching fire with flammable material, that’s s illogical,” said Kabambe, who is also Democratic Progressive Party (DPP) DPP presidential candidate for the 2025 presidential elections.
Last week, RBM announced a 44 percent devaluation of the Kwacha which has resulted in the rising cost of almost all basic commodities on the local market.
However, Minister of Finance and Economic Affairs, Simplex Chithyola Banda on Monday shameless claimed that government is with Malawians now and will not allow them to suffer.
He further went on to outline ‘unrealistic’ measures which government has put in place to cushion Malawians from the effects of the devaluation.